Reporting Earnings on Upwork to IRS

When to Report

As a freelancer on Upwork, you must report your earnings to the IRS when you file your annual taxes. This includes all income earned during the tax year, regardless of the amount. While Upwork doesn’t send earnings information to the IRS directly unless you cross an income threshold of $20,000 and 200 transactions, it is still your responsibility to report all income to the IRS.

How Much to Report

You must report all your Upwork earnings, regardless of the amount.

It’s important to note that the IRS considers all income earned through freelancing (even less than $600) as self-employment income, which requires you to file schedule C (Profit or loss from business) and schedule SE (Self-employment tax) along with your Form 1040.

Additional Tips

• Freelancers should make sure to keep track of all the projects and the corresponding income received to avoid any discrepancies.
• It might be useful to maintain a detailed record of your job history and payments received. This can be accomplished with a simple excel sheet or through a bookkeeping software.
• Consider hiring a tax professional particularly if you are new to handling self-employment taxes. They can provide helpful advice and ensure you are properly following tax laws.
• Finally, remember to keep track of your business expenses. As a freelancer, you may qualify for various deductions.

Please note that this is a general advice and the tax laws could vary depending on your location and specific situation. It is always a good idea to consult with a tax advisor for accurate information.